By Josh Hall (Twitter: @Vancan19)

city keeping tabs on financial reserves

City reserves healthy, overall 2018 variances unfavourable

Jun 24, 2019 | 9:06 PM

The City of Red Deer saw its reserve funds decrease from 2017 to 2018, but officials say it’s not a doom and gloom situation.

Overall reserves went from $220 million to $219 million, city council heard during its meeting on Monday.

Chief Financial Officer Dean Krejci says The City’s reserves are healthy.

“We have forecast out for 10 years, so as long as operations are consistent, we do have sustainable reserves,” he notes. “If we start seeing some major emergencies like flooding, fire etc., and we don’t get any government assistance, we could see those reserves deteriorate.”

The City applied for but was denied assistance from the province following the windstorm that battered Red Deer two years ago.

TOYS FOR TICKETS

Trade in a toy for your AHS parking ticket this holiday season

1h ago

just $1.50

Holiday Smile Cookies for charity back at Tim Hortons through Nov. 24

2h ago

numerous charges

Three arrested with weapons and drugs in north Red Deer

6h ago

Council was also apprised on Monday of the latest variance numbers for budgeted items for the year leading up to Dec. 31, 2018. Municipalities are required to create reports on variances by the Municipal Government Act.

Overall, there was a $1.2 million unfavourable variance in revenues for 2018.

“We are continuing to see the slower economy, so there are a number of areas on the tax-supported and utility side where we are experiencing lower revenues than anticipated,” Krejci explains.

“Council asked about (variances for) recycling, solid waste, water, wastewater, and we’re certainly seeing it on the tax-supported side in the areas of transit, and recreation parks and culture. Those are the items we will continue to keep an eye on.”

Notable unfavourable variances include $7.9 million in delayed land sales and $1.4 million less than projected revenue from solid waste.

Significant favourable variances included $2.4 million less than anticipated debenture interest expenses, and $4.1 million less than anticipated expenses for wages and benefits.